TV is Dead – but that’s good news for the Marketer!

John Strattion, EVP and CMO of Verizon Communications, keynote speech at the Media Convergence Forum

Audience fragmentation has made media planning a much more complex process – $70B TV, $33B magazines, $28B newspapers, $11B radio, $18B internet, $4B outdoor (US Ad spending 2007)

Since 1985 the number of channels has grown 6X – causing viewership hours per channel decrease by 50% (12B additional videos consumed per month not viewed on TV)

In the same 20 years …

The audience that broadcast TV draws has decreased by 60% – but the cost to reach an audience on TV has significantly increase over the past 20 years

Bill Gates said “TV is dead” because the lack of control for consumers in TV, internet allows consumer to consume what they want and when they want it not on the publishers schedule.

IP Technology is poised to converge the TV and Web experience.

Some cornerstone elements of this convergence are:
– VOD allows users to take control of their own experience because with DVR you must know what you want to watch before it airs!
– Targeted ad insertion radically changes the medium – no longer by “slots” you buy an “audience” based on geographic, demographic, and viewing behavior segmentation.

Target set up boxes with behavioral and consumption patterns – deliver ads that relate to the purchase patterns – pay for performance, geotargeting and other online measurements all start applying once this is possible. Then once an ad is delivered – users are allowed to search and discover full-line catalogs and T-commerce right from the set top box.

Bottom line – TV becomes much more like the internet (IPTV) but with broadcast programming and ads will be bought and delivered like internet advertising!

And just another thought – Can you envision a crossover of web programs to TV? Like an eBay/Home Shopping Network channel or Americas Funniest Home Videos/YouTube edition??

7 comments to TV is Dead – but that’s good news for the Marketer!

  • Mukund Mohan

    The cost per “prospective viewer” in Television is extremely high if you consider $70B spent on TV and the lack of tools to indicate preference and buying behavior.
    thanks Paul.

  • Retiredebetfreehappy

    Markets are changing, few are dying. Everytime there’s a technology revolution, people come out and declare that “old” technology is dead.

    Retirement Income – Home based Business, Marketing System, Internet Marketing, Online Marketing, Multi Level Marketing, home-made marketing system

  • Paul Dunay

    @ Mukund – great point but with new technologies like a Google AdSense for TV that should come down dramatically

  • Paul Dunay

    @ Retiredebtfreehappy – actually the TV is Dead comment come from bill Gates who said it a few years ago. I am happy to be in the company of people like that who declare such things

  • LEADSExplorer

    If you can’t measure the effectiveness, the media channel will die.
    – Print magazines and newspapers
    – Aired TV
    – Billboards
    If a marketeer has to choose between a measurable channel that he can have statistics or a media channel that he has to inquire the response with a poll, then he will be choosing the measurable channel.

  • Paul Dunay

    @ Leadsexplorer

    good point – measurement is mandatory now if a channel will survive

  • Anonymous

    TV is not dead, however, people need to know how to use it. Video can serve your business in certain way and TV in another. Because of market segmentation, its easier to get to your target market. They have their own channels. They will consume Tv when they want to, not when you ask them to.

    Knowing HOW to use TV will make is successful. Just like knowing HOW to use online video will make you successful.

    Very few YouTube videos become viral, compared to the millions posted that no one watches.

    Dr. Wright
    The Wright Place TV Show

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>